Threat of New Entrants
The paper will review five forces within the Kodak company. One of the first forces is the threat of new entrants in electronics for Kodak. Innovations and methods can pressure Kodak to lower prices and reduce costs, thereby maintaining its authority among customers.
Karami (2019) argues that Kodak faces a high-intensity competitive rivalry in its industry. To overcome this threat, Kodak should focus on further product innovations. It can be done through research projects and budget allocations for new development initiatives.
Bargaining Power of Suppliers
The next threat is the bargaining power of suppliers, which can decrease margins, potentially benefiting Kodak. Some powerful suppliers can diminish Kodak’s abilities and force it to pay higher prices for raw materials. To overcome this threat, Kodak should establish an efficient supply chain that allows suppliers to compete for specific product deliveries. Furthermore, new approaches can be developed to reduce the use of raw materials or replace them with alternative materials. It can also be the case for companies that own and operate their own manufacturing facilities, supplying specific materials.
Bargaining Power of Buyers
The next factor is the bargaining power of buyers, where buyers choose the best offering at the lowest available price. This will diminish Kodak’s profits and decrease its customer base. The higher the bargaining power, the lower the product price will be, as it will be forced to be bought. To overcome this, building a large customer base is essential. Furthermore, it is possible to provide more discounts and events.
Threat of Substitute Products
The company can also face the threat of substitute products, as new products similar to those of Kodak can be introduced. This can result in improved productivity and comparable or lower costs. To overcome this, Kodak should understand the core needs of customers and the market demand.
Threat of Competition
The last threat is rivalry among existing competitors. The electronic equipment industry is highly competitive, with numerous competitors offering similar products and prices. To overcome the loss of profit, Kodak should define its unique value proposition for customers or even collaborate with competitors to maintain market control.
References
Karami, Nasim, “Review of Kodak’s strategic management of technology. Why Kodak failed?” (2019). Engineering and Technology Management Student Projects. Web.